This is a question that comes up in each of my wealth advisory sessions. Lately, with the stock markets going up, I see this coming up a lot more often than before.
In the past 12 months the BSE Sensex has gone up by 36%. Every week it is scaling new highs and even though every investor is happy seeing his portfolio go up – he/she also knows that it is only paper money, till the stock is sold and the money comes into your bank account.
So the question is - should I sell my stocks?
As per me – there are only three reasons for exiting an investment. They are:
You need the money for an expense - for example you need money for a planned car upgrade or an unplanned hospitalisation. You have investments giving you great returns – but what to do – you need to sell